Sunday Homework

The bears are in control. The bears were fed on Friday and it is short the pops until the bulls can take 3370. I would expect the market to gap-down tonight on the open as Asian gets to react to the US selloff on Friday. A lot will depends on the virus news. The media is doing their best to scare the sheep. Just a reminder 14,000 people in the US died during the 2019-2020 regular flu season. This virus is big news for the media, but will probably be forgotten in 2 quarters.

The news media is no longer there to provide you with information. They exist to generate profits for their networks. To do that they will use the most sensational stories they can dig up or make up to scare the public. They do this by blowing simple stories way out of proportion. Yes, the virus in China WILL shift the supply curve to the left, but those products are still going to be demanded. It’s not like no one is ever going to buy an Iphone again. The supply will just have to play catch up later in the year. I would also expect every single company reporting earnings for the 1st quarter to throw anything bad they can into those earnings. They can use the virus as a great excuse to clean house.

OK enough rambling.onto the futures carts. The first is my normal 30 minute profile chart. This chart normally shows 24 hour sessions. I have changed this one to show RTH (Real Time Hour or Day session) times. This means it starts calculating on the US stock market open and stops at the US stock market close.

I did this because it showed something I thought was important. We have naked VPOCs (Volume Point of Control) above current price. The market usually revisits these areas in a relatively short period of time. Bulls need to hold the bottom fo the consolidation zone on the left of this chart.

I would be a buyer of the first test of 3313ish.

ES 03-20 (30 Min)  2_21_2020.jpg
30 minute ES Emini RTH profile chart.

4 hour ES chart

ES 03-20 (240 Min)  2_21_2020.jpg

5 minute ES chart. I use this for tactical entries. Notice you have some diaper changers on this chart. I would sell at that first touch of those areas.

ES 03-20 (5 Min)  2_21_2020.jpg

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